In Final Fantasy VII, the first town visited after escaping Midgar is Kalm.
Kalm is a quiet settlement located northeast of Midgar on the world map. After the party escapes Shinra's capital, the game shifts from Midgar's enclosed urban environments to a wider world of towns, wilderness, and travel routes. Kalm is the first proper town the group reaches outside the city, making it an important transition point in the adventure.
Kalm is also the setting for one of Final Fantasy VII's most important early story sequences. At the local inn, Cloud tells the party about a mission to Nibelheim five years earlier, when he served alongside the legendary SOLDIER Sephiroth. The flashback introduces the history of Sephiroth, Tifa's hometown, Shinra's experiments, and the event that drives much of the game's plot.
Players commonly mix up Kalm with Junon because Junon becomes the next major destination after the party crosses the Mythril Mine. Costa del Sol and Nibelheim are much later locations. Kalm also returns in later Final Fantasy VII stories, including Final Fantasy VII Rebirth, where it remains associated with Cloud's account of the past.